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Week 4: Governance and Finance
Link to recording below:
A good place to start, because governance has on-chain and off-chain components to them.
DAOs in a more narrow sense could refer to more web3 (cryptographic identities, on-chain activity, utilizes smart contracts). But on a broader sense, every organization either begins and/or in a sense, is a DAO.
- There is a difference in balance of trust it comes to multi-signature wallets. Where in a scenario 5 of 7 signers in a group will have to worry less about the imbalance of trust given to a singular person 5 of 7 voting through emojis and trusting 1 person to carry out the same transaction.
- Some on-chain smart contract use cases for DAOs other than to transfer funds with multi signature wallets can be: Snapshot which can store information and data about community votes about certain ideas.
- L1 voting protocols can become expensive to operate on, in which we may see more conversational votes over smaller decisions, verses spending ETH on transferring a large sum of funds.
15:55 The Curio Cards DAO hasn't come across any on-chain voting besides the initial royalty free vote on Mar 29, 2021.
It seems like most things happen by conversation in the Curio Cards community, and it becomes the question of how we documentation and how those documents can be accessed in the future for learning.
17:47 Some structure examples:
- Every wallet is one entity = 1 vote regardless of no. of cards owned and they are all capable of proposing and voting.
- A more hierarchical scheme whilst remaining as flat as possible. For example voting on the guilds' stewards and then assigning power to that guild steward to create a sub-governance system that can raise up certain projects within the guild's scope.
22:45 "How do we decide which are DAO projects and which are not?"
- That idea may come into conflict with the ideal of an inclusive community. A natural selector of what becomes more prioritized over others is the amount of human effort put behind the project idea to get it off the ground.
- Give all ideas the same starting position through a channel or a public board for people to see and see over time the types of projects that got off the ground/fell through and everything in between.
- Proposals and work projects unless specified should begin publicly to help the community engage with it publicly. <-- note: How do we create this type of environment?
- Idea: every guild could come up with their own proposal idea
Concluding the Governance discussion:
- For projects that want to get started: approach the guild to which it is the most relevant and the guild can evaluate based on things like interest, availability, viability.
- Make clear what the DAO can do can't do, draw clear boundaries for the purpose of DAO sustainability. And make it easy for people to keep up with and how the decision making works. Don't DAO over the centre of its own gravity, or use a structural design that wasn't agreed upon.
- Prioritize tasks based on how well they solve pain points for the community. Or could impact the community in meaningful ways. Like how the DAO would decide what needs the attention and resources of specific members of the DAO, verses a project that could technically be created without key members of the community.
Finance Discussion begins
43:20 Do we like the idea of donating to specific guilds, therefore having one multi-sig per guild?
- Like this idea, it would mean the people who are closest to the activity can approve for tasks more efficiently over multi-sig signers not invested in that guild. Alternatively there is a certain level of responsibility involved in ensuring there is no trail of abandoned multi-sigs.
49:43 What is the relationship between NFTx Vault and the Curio DAO?
The NFTx Vault allows for fractionalized Curio Cards to exist, and contributors get rewarded for their contributions with that fractionalized cards.
Medium to long term funding options:
- Donations/Seed Funding
The topic of the legal side of things in DAOs. Can we make it a note to discuss at a later day how we can operate as a DAO safetly
- Individual can protect themselves, if one is receiving contributions from a DAO, consider researching this until there is a clear guide for DAOs to operate as seperate business entities, globally.
1:18:00 Curio Film Project discussion begins.